Wednesday, January 25, 2012

J&J Q4 Profit Beats Estimates, But Guides 2012 Below View

(RTTNews.com) - Health care giant Johnson & Johnson (JNJ) reported Tuesday a profit for the fourth quarter that plummeted from last year, hurt by hefty charges primarily related to the DePuy ASR hip recall.
Adjusted earnings per share topped analysts' expectations on a rebound in revenues, but JNJ shares were set to open lower after the company forecast full-year 2012 earnings below Street view.

The New Brunswick, New Jersey-based maker of Listerine antiseptic mouth-rinse, Acuvue contact lenses and Band-Aids reported net earnings of $218 million or $0.08 per share for the fourth quarter, sharply lower than $1.94 billion or $0.70 per share in the prior-year quarter.

The results for the latest quarter include after-tax charges of $2.9 billion, while the year-ago quarter included after-tax charges of $922 million, both periods representing the net impact of litigation settlements, product liability expense and costs associated with the DePuy ASR Hip recall.

Excluding items, adjusted earnings for the quarter grew to $3.13 billion or $1.13 per share from $2.86 billion or $1.03 per share in the year-ago quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share for the fourth quarter. Analysts' estimates typically exclude special items.

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